Business Law

While there’s a lot to be said about a snappy presentation for your business plan, it’s as much of a process as it is a final product. Many small business owners are tempted to outsource the creation of their business plan; however, this is a mistake. Think of writing your business plan like preparing a study guide for college exams. Sure, the study guide itself is a useful tool, but the real utility comes from the work that goes into creating it. Keep reading below to learn about the seven most important sections every business plan should include. Executive Summary The executive summary is the first element of your business plan, though it is should be written last. Since the executive summary will likely be the most read section of your business plan, use it as your opportunity to grab your reader’s attention and let them know why they should continue through the rest of your document or proposal. Executive summaries generally shouldn’t be longer than a couple of single-spaced pages in length, though the actual length will depend on the complexity of your business. Learn more about how to write a winning executive summary. Company Description/Overview The goal of your company description or overview is to leave your reader with a sense of your company’s overall purpose, the direction it’s heading in, its goals and background. When writing your company description, it can be helpful to break it down into subsections to be sure you cover everything. Learn more about how to write an effective company description. Market Research The market research section of [...]

A sole proprietorship is the simplest and least expensive, at least in terms of initial startup costs, type of business form to start. If you are an individual involved in a for-profit business, are the sole-owner and decision-maker of the business, then you are automatically considered a Sole Proprietorship. A sole proprietorship business form appeals to individuals starting a new business that is intended to remain small, does not involve great exposure to personal liability, and does not warrant the expense of incorporation nor the ongoing expense of corporate formalities. Often times, professionals such as doctors, lawyers, architects, and accountants may operate as sole proprietors in the early years of their practice to avoid the expense and formalities associated with other business forms. While sole proprietorships require there only be a single owner/decision maker of the business, a husband and wife can generally conduct business jointly and hold joint title to business assets in both names and still come within the definition of a sole proprietorship. See, CaliforniaCorp. Code § 16202(c)(1). Nontax Considerations In a sole proprietorship, the owner is personally liable for the obligations and liabilities of the business, even in excess of the amount invested. Thus, as a sole proprietor both your business and personal assets are at risk. Even if you have insurance, you may still be personally liable for business debts if claims are in excess of your policy limits. Because of the unlimited personal liability associated with Sole Proprietorships, individuals with substantial net worth who are involved in businesses that deal with hazardous materials, products, or are otherwise likely to [...]

Whether you’re starting a brand new business or need to reorganize an existing one, selecting the business entity is an important decision.  There are a number of different types of business forms available under California law, each with its own advantages, disadvantages, tax consequences, and liability protections. As a business lawyer, it is my job to help you select a business form that is most appropriate for your needs. From the time you decide you want to hire me as your business attorney, I will collect and analyze all the pertinent facts and conduct any research that is necessary to helping you choose a business structure that will achieve the best results for you. Contact me today to discuss your business’ needs. If you’re like most people, you probably want to do a little research first. To help make you a more informed business owner, I’ve written a serious of articles explaining some of the key differences between the various business forms you may consider. Types of Business Forms Available Under California Law Broadly speaking, there are two types of business forms you can organize under: the corporate form and the non-corporate form. Anything that is not a type of corporation is said to be “non-corporate.” Easy enough, right? The most common types of non-corporate business forms include: Sole Proprietorships; General Partnerships; Limited Partnerships; and Limited Liability Companies. There are also a number of other non-corporate forms that you can organize your business as, including: Business trusts; Unincorporated Associations; Publicly Traded Partnerships; Small Business Investment Companies; and Joint Ventures. Corporate forms include: General Business Corporations; [...]